Finland Times

 

Stockmann department store in Helsinki.File Photo – Lehtikuva.

Retail giants Stockmann on Monday announced that it will initiate codetermination negotiations which could lead to reduction of around 380 employees.

 

The negotiations will affect approximately 3,000 employees, said Stockmann in a press release.

 

The redundancy will be implemented through lay-offs, pension plans and the termination of tem-porary employment relationships.

 

“The market conditions have been more challenging than predicted for a long time now and con-sumer behaviour has changed considerably. Despite the changes that we have made, Stock-mann’s sales performance has not lived up to our expectations and our cost structure is too heavy in relation to our current revenue level,” said Stockmann’s interim CEO Lauri Veijalainen in the release.

 

Stockmann is targeting to save approximately 20 million euros.

 

Since 2014, Stockmann has been implementing its strategy in challenging market conditions. According to Stockmann, the measures will improve profitability in 2016.